Dealer markup on silver eagles
stevepk
Posts: 238 ✭✭✭
I encountered a so-called dealer who sells silver eagles at $32 each and offers to buy them at $17 each. Silver is currently $18.56 per ounce. Is this a typical markup, or is this dealer a margin hog?
He claims to buy and sell at these prices with ease. I find this hard to believe.
He claims to buy and sell at these prices with ease. I find this hard to believe.
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Today's quote on Provident is $21.86 as an example. Buy price is $20.57
LINK
dealers (APMEX, MCM, etc.) to see their buy/sell spreads. One of the tightest spreads is the green monster box,
but that is a big purchase for the average collector.
Bought a single roll of twenty last week for $23 per coin on eBay with delivery included.
<< <i>I got several PCGS MS69's for less than his sell price. Lot or as many as I want raw ones for less.
Bought a single roll of twenty last week for $23 per coin on eBay with delivery included. >>
You can buy then for $21.20 per coin delivered.
<< <i>I encountered a so-called dealer who sells silver eagles at $32 each and offers to buy them at $17 each. Silver is currently $18.56 per ounce. Is this a typical markup, or is this dealer a margin hog?
He claims to buy and sell at these prices with ease. I find this hard to believe. >>
Obviously the people he is selling to and buying from aren't too smart.
Is this dealer out in the middle of nowhere? Sometimes when I'm on vacation I stop in to coin shops in out of the way areas and because they have no competition they charge ridiculous prices like that.
<< <i>I encountered a so-called dealer who sells silver eagles at $32 each and offers to buy them at $17 each. Silver is currently $18.56 per ounce. Is this a typical markup, or is this dealer a margin hog?
He claims to buy and sell at these prices with ease. I find this hard to believe. >>
If he truly is able to buy at $17 and sell at $32 "with ease," then he has found the promised land. Have you determined which of your legs is longer than the other?
See http://www.doubledimes.com for a free online reference for US twenty-cent pieces
Some folks just want 1 or 2 and will pay whatever the price they see.
Some SCDs (so-called dealers
As for the spread, I have seen a few of the metal-monkies on the PM forum here that like to give reasons they have a certain sell price (that some may consider high...but it's a free market after all, eh?) and have a MUCH lower (lowball like) price they will buy at. If a person disagrees with it, they get all pi$$y with them. So, seeing that on the PM forum has hardened me to these stories and I just let it roll off....
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
<< <i>I encountered a so-called dealer who sells silver eagles at $32 each and offers to buy them at $17 each. Silver is currently $18.56 per ounce. Is this a typical markup, or is this dealer a margin hog?
He claims to buy and sell at these prices with ease. I find this hard to believe. >>
That's nothing! The local B&M is selling them at nearly $50. When I have asked, he mentions something about shipping costs from the mint and his cost from his wholeseller. Same coins have been sitting there for a while
one shop around town buys em at 15 sells at 29.00 (he is overloaded with em)
other shop buys at 20 sells them at 25
flea market dealers I believe are paying 19 range, selling at 23.00
I do very very little business.
Liberty: Parent of Science & Industry
<< <i>
<< <i>I encountered a so-called dealer who sells silver eagles at $32 each and offers to buy them at $17 each. Silver is currently $18.56 per ounce. Is this a typical markup, or is this dealer a margin hog?
He claims to buy and sell at these prices with ease. I find this hard to believe. >>
That's nothing! The local B&M is selling them at nearly $50. When I have asked, he mentions something about shipping costs from the mint and his cost from his wholeseller. Same coins have been sitting there for a while >>
That doesn't sound to me like "selling with ease," however, which is what the OP's "so-called dealer" has claimed.
See http://www.doubledimes.com for a free online reference for US twenty-cent pieces
<< <i>I went to the Indy coin show today and they were selling them for $23 and I thought that was kind of steep with silver below $19. 90% was 15 x also. >>
Well they do have more overhead than I do with my mailbox.
Capital investment depends on confidence. - Martin Armstrong
<< <i>The very limited number of authorized dealers (about 11 of them) who buy directly from the US Mint pay a $2.50 premium on the ASEs. Each new seller has to add in his bit of profit. I buy only when I can get them for around $2 premium or less, usually on ebay with ebay bucks promotions. >>
I thought the APs got them for $1 over. Hard to imagine an AP could make money selling for $2.25 over and ordering from the Mint at $2.50 over.
<< <i>The very limited number of authorized dealers (about 11 of them) who buy directly from the US Mint pay a $2.50 premium on the ASEs. Each new seller has to add in his bit of profit. I buy only when I can get them for around $2 premium or less, usually on ebay with ebay bucks promotions. >>
From the US Mint website . . .
Silver Eagles
•United States Mint's Authorized Purchasers are charged the price of silver plus $2.00 per coin premium.
•Minimum ordering requirement: 25,000 coins
HH
1947-P & D; 1948-D; 1949-P & S; 1950-D & S; and 1952-S.
Any help locating any of these OBW rolls would be gratefully appreciated!
<< <i>I encountered a so-called dealer who sells silver eagles at $32 each and offers to buy them at $17 each. >>
That would be a bummer if his buyer wants to sell them back a week later and gets offered $17.
I try not to buy pop from hotel vending machines, but when I have to, I have to.
Yeah, and I'm Frosty the Snowman.
I knew it would happen.
<< <i>
<< <i>I encountered a so-called dealer who sells silver eagles at $32 each and offers to buy them at $17 each. >>
That would be a bummer if his buyer wants to sell them back a week later and gets offered $17.
What would be a bummer is if the buyer's strategy is to buy ASE singles, hold them a week, and then sell them where they bought them, no matter what the dealer's spread is.
Edit: I wonder what this "so-called" dealer's spread is on rolls and boxes of 500? I also wonder what is buy-sell spread is on such things as buffalo nickels and indian head cents in 2 x 2's?
Liberty: Parent of Science & Industry
I bumped into an antique/coin dealer in NH that was selling 90% at 258 and buying it at 10x. It was a while back but I think that melt was around 20x at the time. He was the only place in a 40 or 50 mile radius that had any though.